Doctrine by topic · DGT Observatory

Recipient of Income: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 10 rulings · 2014–2023

Current position

If the withholding was not applied or was lower than required due to reasons attributable to the withholding agent, the recipient may deduct from their tax liability the amount that should have been withheld pursuant to article 99.5 of the LIRPF (Personal Income Tax Law). Failure to comply with the obligation to withhold does not allow the withholding agent to make deductions from the worker's income or to claim the unwithheld amounts in a tax context. In the case of public sector remuneration, only the amounts actually withheld may be deducted.

The DGT's position has remained constant since 2014, reaffirming the recipient's right to deduct what should have been withheld due to the fault of the withholding agent. The doctrine has maintained the impossibility of the withholding agent passing the tax error on to the worker. Clarifications have been added regarding the exclusion of public sector remuneration and the use of Tax Agency tools for calculation.

Turning points

  1. V1170-19

    Introduces a limitation for public sector remuneration, where only the amounts actually withheld may be deducted.

Analysis based on 10 of 10 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

10
V1311-21 11 May 2021

Income tax deductions for amounts an employer failed to withhold

SG de Impuestos sobre la Renta de las Personas Físicas
retencionesingresos a cuentarendimientos del trabajocuota de la declaraciónsujeto obligado LIRPF — Ley 35/2006 del IRPF art. 17.1.aLIRPF — Ley 35/2006 del IRPF art. 99.2
Affects CompanyExpat · Non-residentIndividual
V0829-15 13 Mar 2015

Withholding agents cannot reclaim uncollected income tax from employees

SG de Impuestos sobre la Renta de las Personas Físicas
retencióningreso a cuentasujeto obligadoperceptor de rentasresolución judicial LIRPF — Ley 35/2006 del IRPF art. 99.2LIRPF — Ley 35/2006 del IRPF art. 99.4
Affects CompanyExpat · Non-residentIndividual

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